"Last week, a legal tech company Lawhive reportedly purchased a UK law firm lock, stock, and barrel. According to a story about the acquisition, the law firm, Woodstock, specializes in property law. (Unlike in the US, UK regulations permit non-lawyer entities to own law firms.) This appears to be the first or at least one of the first examples of a legal tech company buying a law firm."
"The fact that an AI-based legal tech vendor owns and controls a law firm could have a significant impact. Such a vendor would have clear incentive to reduce costs and increase profits by utilizing its AI tools to do most of the work historically done by lawyers. It could thereby reduce staff to recoup its investment.The services traditionally performed by the lawyers and legal professionals in such a law firm would now be done by AI, replacing humans as the primary provider"
Lawhive reportedly purchased a UK law firm, Woodstock, which specializes in property law and operates in the US. Lawhive is described as an AI-powered firm whose assistant, Lawrence, drafts documents, conducts research, and manages cases. Google is a significant investor. Lawhive offers legal service quotes at up to half the cost of standard firms and often for a flat fee. Ownership by an AI-based vendor creates incentives to replace human lawyers with AI to cut costs and increase profits, potentially reducing staff. Concerns arise about client disclosure of AI handling and safeguards against hallucinations and inaccuracies.
Read at Above the Law
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